Introduction of Human Resource Management
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With the increasing competition in the industries, it had become important for the firms to have effective workforce. Human resource plays an important role in theorganisation and due to this it is essential for the firms to have better human resource management in the firm(Boon, et. al. 2019). In this report the research would critically evaluate the statement “The people strategy in any organisation is crucial for its continued success”. Along with this the report will also highlight the role of SHRM and constituent practices on organisational performance.
Human resource is a most important resource for the organisation, and it is crucial for the businesses to develop effective strategies for managing them in an appropriate manner. Businesses needs to have better people strategy for the employees of the firm as this would help them in managing the employee properly. People strategy has been defined as set of different practices and strategies that are been developed by the human resource management department for attracting, retaining, and managing the employees appropriately and leading them towards success.The business world is becoming complex anda competitive day by day due to this reason it is important for the employers to develop better strategies that can help them in having highly skilled and knowledgeable employees in the firm. HR department of the company is responsible for making better strategies and plan for managing the human resource in such a way that it should align with the business activities and help them in leading the firm towards success(Ahammad, et. al.2020). HRM needs to focus on having clear aims and objectives for the company so that their strategies should also align well with their objective then only they can lead the firm towards their aims and objectives.
Recruitment and selection need to be appropriate that can help the management in selecting the best candidate as pe the job roles so that they can have better employees in the firm. When the company is having highly skilled employees in the firm then they can lead the organisation towards the mission and vision of the company. Along with this the recruitment the management also needs to focus on retaining and managing the workforce. Businesses face issues related to the employee retention. It can be said that the HR needs to have effective strategies for retaining the employee for a longer period. Companies needs to focus o using motivational strategies and applying different motivational theories that can help them in motivating the employees and increasing employee engagement also. Maslow’s motivational theory, Herzberg two factor theory and Vroom’s expectancy theory are some of the effective motivational theories that are used by the businesses for motivating the employees. HR department needs to focus on having meeting the expectations of their employees and should develop effective reward strategy that would help them in offering better rewards to the employees as per their performance. When the employees are rewards for their better performance then it motivates the entire workforce to pay more attention on their work and deliver high quality work in the workplace.
Employee engagement is also a significant part of HR strategy that helps the businesses in ensuring that all the employees are working with better dedication and adding value to the firm(Knezovi?, et. al.2020). Higher level of engagement of the employees in the workplace help the company in operating in an appropriate manner and leading the firm towards their aims and objectives. With the changing market the company needs to make a lot of changes in their working pattern and due to this reason, it is important for them to have more productive workforce that can accept the change with the changing market trends. The HR department needs to develop better strategies for developing the skills and knowledge of their workforce by offering them better planning. Continuous improvement in the skills and knowledge with the changing market trends is required for the human capital. When the workforce is having better skills then only it will help them in working effectively for the firm. It can be said that human resource plays a major role in the success of the company. Due to this reason, it is important for the firm to have better HR strategies and the people strategy that can help the company in their continuous success.
Role of SHRM
Strategic human resource management is playing a major role in the success of the organisation. The SHRM is responsible for developing the HR strategies that direct the employees to work in an appropriate manner that can lead them towards the organisational goals.SHRM is responsible for continuously improving the business performance and inspiring innovation in the firm that can help them in gaining competitive advantage over others in the industry(Deleryand Roumpi, 2017). Along with this SHRM also plays a significant role in change management as it helps the company in making strategic decision and actions that allow them in accepting the change positively. In the fast-changing world companies needs to have effective change management system so that they can operate properly in the changing business environment. SHRM helps the organisation’s HR department in strategic planning, decision making and management of the entire organisation.
Strategies planning is especially important for human resource management for leading the firm towards success and managing all the business operations and human capital in an appropriate manner. The company needs to focus on making effective strategic decisions for the company which can help them in operating properly in the market. Better strategic decision is crucial for leading the company towards their strategic goals. The HR department needs to focus on making short term goals that can help them in approaching towards their long-term goals and company objectives in a systematic manner with the help of short term achievable and measurable goals. All the managers, executive and employees of the company should align well and should cooperate properly for leading the company towards achieving its strategic goals(Collins, 2020). Effective workforce can help the company in gaining competitive advantage over others and due to this reason, the HR strategies are playing a major role.
Impact of SHRM strategies on the organisational performance
Employees are considered as one of the most values asset for the organisations because they are having a major impact on the overall business performance. Human capital needs to be effective in managing all the different business operations than only the firm can operate in an efficient manner. In the changing business environment, the human resource management department needs to focus on developing strategic plan and must make strategic human resource choices. This can help them in operating in an appropriate manner with better strategies and being effective in the changing market. Strategic directions are required to be taken by the organisation that can help them in operating in a single direction and leading the entire firm towards success.
Effectiveness of the SHRM and the quality of work delivered by the employees in the company are major factors that are having a higher influence on the success of the company and its performance as well. employees working in the organisation needs to work properly and should perform their roles and responsibilities efficiently. Productive workforce is required in every organisation for managing the business operations in effective manner. Employees needs to me highly motivate and should have a feeling of belongingness towards the company. Then they focus on developing better ideas, making effective decisions, and working properly for the organisation that can improve the overall business performance. The HR department needs to ensure that they should have better strategies for developing a healthy workplace environment and positive organisational culture that hold better values. Companies needs to ensure that the employees should have a positive attitude towards their job and needs to be satisfied with their job roles then only they are motivated to deliver better performance to the firm(Bailey, et. al.2018). Along with this the company needs to focus on developing better strategies for reviewing the performance of the employees and rewarding them based on it. Also, they need to focus on working on the factors that can help them in increasing employee engagement. It can be said that businesses need to understand that the quality of work delivered by the employees in the firm is having a higher influence on the overall business performance. Thus, businesses need to have effective SHRM and HRM that can help them in improving the performance of the employees and managing them in an effective manner.
The above-mentioned report had critically evaluated the important of people strategy for the success of company. It can be said that businesses need to have effective people strategies that can help them in managing the human resource in an effective manner. SHRM is playing a major role in the success of company and it is essential for leading the company towards their strategic objectives. Based on the above analysis, it can conclude that people strategy is essential for continuous development and success of the company. Along with this these strategies also help the firms in gaining competitive advantage over others and improving the overall business performance.
Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human resource management. Human Resource Management Review, 30(1), p.100700.
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., 2018. Strategic human resource management. Oxford University Press.
Boon, C., Den Hartog, D.N. and Lepak, D.P., 2019. A systematic review of human resource management systems and their measurement. Journal of management, 45(6), pp.2498-2537.
Collins, C.J., 2020. Expanding the resource based view model of strategic human resource management. The International Journal of Human Resource Management, pp.1-28.
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and competitive advantage: is the field going in circles?. Human Resource Management Journal, 27(1), pp.1-21.
Knezovi?, E., Bušatli?, S. and Ri?i?, O., 2020. Strategic human resource management in small and medium enterprises. International Journal of Human Resources Development and Management, 20(2), pp.114-139.